 "MedTech, MedTech industry")
The Association of Indian Medical Device Industry (AiMeD), in its pre-Budget recommendations, has urged the Centre to address the soaring import bill, which currently stands at over Rs 63,200 crore.
According to the Global Trade Research Initiative (GTRI) report on August 2023, the Indian medical devices industry has the potential to expand from $12 billion to $50 billion by 2030.
This expansion could reduce import reliance by 35 per cent and boost exports from the current level of $3.4 billion to $18 billion by 2030.
The ripple effect of this shift could generate over 1.5 million jobs in medical device manufacturing and related healthcare services.
Rajiv Nath, Forum Coordinator at AiMeD, highlighted the need for the government to withdraw duty exemption notifications on medical devices and provide nominal protection to neutralise the competitiveness of disabilities in the manufacturing of medical devices in India.
Additionally, the industry seeks a phased-out approach to custom duty increases on critical components, ensuring the viability of manufacturing and avoiding erosion of competitiveness with zero-duty Free Trade Agreement (FTA) countries.
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“Consumers do need to be protected but instead of a low duty strategy we have been recommending Customs to monitor MRP of imports and when found unreasonably higher than imports landed price, we recommend NPPA to consider capping MRP,” Nath added.
Mudit Dandwate, the chief executive officer and co-founder of Dozee underscored the significance of reducing import dependence in the medical device sector.
He highlights the potential for growth in domestic production, given the increasing number of hospitals, rising healthcare penetration in Tier-II and Tier-III cities, and the escalating demand for quality healthcare.
“The Union Budget 2024-25 should broaden the scope of the PLI scheme while considering potential industries that could be included, to achieve $1 trillion exports by 2025. By laying the required foundation and streamlining the approval procedure, the government can guarantee a sturdy framework aimed at not just drawing in foreign investments, but also inspiring local ‘Make in India’ players to thrive,” Dandwate added.
Pavan Choudary, chairman, the Medical Technology Association of India provides a different take.
“India’s reliance on medical device imports is not unique, as developed MedTech manufacturing hubs such as the US, Germany, and Japan, import shares hover around 40 per cent. Even in China, constituting approximately 20 per cent of the global medical device market, the import share stands at 70 per cent. The inherent impracticality of a single geographical location housing the diverse manufacturing and ancillary ecosystem required for all types of medical devices leads to the specialisation in specific segments,” he explained.
Beyond the pre-budget recommendations, experts stress critical policy interventions for the MedTech industry.
These include enhancing quality regulations to meet global standards, providing incentives for achieving and surpassing international benchmarks, and promoting indigenous products through awareness campaigns and strategic initiatives.
On the impact of a flat 12 per cent GST rate on the entire medical device spectrum, experts suggest that such a reduction could enhance accessibility and affordability of quality medical services for patients.
They emphasise the need for broader policy measures, including expanding the scope of Production Linked Incentive (PLI) schemes, simplifying approval procedures, and targeting.
With the increased government support, industry leaders project significant growth for the Indian MedTech industry in the next 5-10 years.
The sustained growth rate of 13-15 per cent year-on-year (Y-o-Y) could lead to exponential expansion, possibly four to five times the current size.
Challenges faced by Indian MedTech companies include limited access to capital, a shortage of skilled workforce, and issues with technology transfer, which require a multi-faceted approach.
Suggestions include government-backed funding programmes, venture capital support, industry partnerships, specialised training programmes, and collaborative frameworks between industry players and research institutions.
Gurmeet Singh Chugh, chairman of Translumnia Medical Devices, emphasises the need to establish a robust ecosystem in India, eliminating the necessity for local med tech companies to conduct high-end equipment testing, such as the chemical characterisation of stents, in European countries.
Chugh says this testing, which costs approximately Rs 70 to 80 lakh when conducted in a European lab, could attract more participants in the field if similar testing facilities were available within India.
Seeking relief
Withdrawal of duty exemption notifications on medical devices
Phased-out approach to increase in custom duty on critical components
Broadening of the scope of PLI scheme
Reducing import bill from medical devices
